While Diversification Decreases Risk, It Also Increases the Chance of a Large

question 30

True/False

While diversification decreases risk, it also increases the chance of a large gain.

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Definitions:

Contract Executed

An agreement that has been fully performed by all parties involved.

Fraud

Intentional misleading to achieve unjust advantage or illegal benefit, or to cheat someone out of a lawful entitlement.

Executory Contract

A contract under which both parties to the agreement have outstanding obligations or performance yet to be completed.

Novated

The process of replacing an original contract with a new one, transferring rights and obligations to another party.